Industry Insights

Industry Insights

Industry Insights

How Music Royalties Actually Work

How Music Royalties Actually Work

How Music Royalties Actually Work

13 Dec 2025

13 Dec 2025

13 Dec 2025

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By Siphelele Mkhabela

I know you didn’t ask, but if you care about getting paid as a musician you should know how royalty collection works. At the heart of music royalties in South Africa are collective management organisations (CMOs) and rights agencies. They are the mechanisms that turn plays, broadcasts, streams, and licences into payments. The main players you need to know are: 

I will explain who collects what, how money gets into the system, and how it ends up in an artist’s bank account. But before we jump into that, let's clarify what we mean when we say "royalties".

Royalties are payments made to creators and rights holders when their music is used. It's like rent. Every time a song is played on radio, streamed online, performed live, broadcast on TV, or played in public spaces, it generates revenue. Royalties are how that revenue is distributed to the people who created the work. There are different types of royalties depending on how the music is used, such as for writing the song, recording it, or reproducing it on digital platforms. They exist to ensure that music remains a source of ongoing income, not just a once-off payment, allowing artists to earn from their work long after it has been released.

SAMRO collects performing rights royalties. This is money earned when your song is played on radio, TV, live stages, or in public spaces like clubs, malls, and restaurants. SAMRO does not collect for the recording itself. It collects for the composition. That means composers, songwriters, and publishers get paid when a song is performed or broadcast. Radio stations and venues pay licence fees to SAMRO, usage is logged, and SAMRO distributes royalties to registered members.

SAMPRA collects needletime royalties. This relates to the sound recording, not the song writing. If you performed on a recording or you own the master, SAMPRA collects money when that recording is played publicly. Radio stations, broadcasters, and some digital platforms pay SAMPRA, and those royalties are split between performers and master rights holders.

CAPASSO collects mechanical royalties. These are earned when a recording is reproduced. This includes streaming, downloads, CDs, and some audiovisual uses. Streaming platforms and digital services pay CAPASSO for the right to reproduce compositions. CAPASSO then distributes this income to composers and publishers.

RiSA does not collect royalties directly, but it plays a critical supporting role. RiSA issues ISRC codes, which are used to track recordings across platforms worldwide. Think of this as a barcode for every recording. Without correct ISRCs, usage can go untracked and royalties can be lost. RiSA also handles industry reporting, certifications, and chart data, which feeds into how music usage is measured.

Here’s how this works in real life. One song played on the radio triggers multiple payments. SAMRO pays the songwriter for the composition. SAMPRA pays the performer and the master owner for the recording. If that same song is streamed, CAPASSO collects mechanical royalties from the platform. In an instance where a song has multiple performers or composers, the royalties get distributed according to a split sheet which determines who gets what percentage of the royalty share. None of this happens automatically unless the artist/s is registered correctly.

The biggest mistake artists make is assuming that one registration covers everything. It doesn’t. Each organisation protects a different part of the copyright. Registering early, keeping your metadata accurate and your profile up-to-date is how you turn music into a sustainable passive income stream instead of hoping for luck and virality. Forget the 'name in lights' for a bit... if you are working to build a career in music, part of the gig is making sure you understand the economics of the industry. It is your job. The trope of the struggling artist feat. the myth of the elusive big break has never been cute and nobody deserves to live that life. You must take ownership of the assets you create and make them work for you because if you don't, ehem… certain companies are gonna chow your money like a slay queen.

That about covers the gist of it. There's more to the system, like unit rates (how much each radio station pays per spin), standardised rate cards, licensing and other nitty gritties. But for the sake of keeping things simple, we'll leave it here for this article.

If you're a musician and would like to know more about this, get in touch with us at 3rdmnd Productions. We'll be happy to assist you with your registration. Share this with anybody that needs this information.

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© 2025 3rdmnd (Pty) Ltd.

All Rights Reserved


Website designed & developed by Siphelele Mkhabela

© 2025 3rdmnd (Pty) Ltd.

All Rights Reserved


Website designed & developed by Siphelele Mkhabela

© 2025 3rdmnd (Pty) Ltd.

All Rights Reserved


Website designed & developed by Siphelele Mkhabela

© 2025 3rdmnd (Pty) Ltd.

All Rights Reserved


Website designed & developed by Siphelele Mkhabela